Shop for dips in these 2 major consumer electronics stocks
Demand for consumer electronics increased last year as the need for high-end connected devices increased amid the COVID-19 pandemic, with people spending most of their time at home. However, as investors have moved away from expensive tech stocks this year to capitalize on the economic recovery by betting on cyclical stocks, many consumer electronics stocks are currently trading at much lower and more attractive prices.
The consumer electronics market is expected to continue to grow in the coming months as many consumers still modernize their homes and seek advanced devices to facilitate their “new normal” lives. According to a report by MarketWatch, the market for consumer electronics and home appliances is expected to grow at a 5.08% CAGR between 2021 and 2025.
Because the outlook for the consumer electronics market looks bright, we believe it might be wise to bet now on the shares of the two major players in the industry – Sony Group Corporation (SONY) and Panasonic Corporation (PCRFY). These stocks are currently trading well below their 52 week highs.
Sony Group Corporation (SONY)
One of the main players in the field of electronic equipment, SONY develops and manufactures a wide range of products. The Japan-based company distributes software titles and complementary content through digital networks, home and handheld game consoles, mobile phones and tablets, among others.
On May 18, Sony Music Entertainment, a wholly-owned subsidiary of SONY, completed the acquisition of 100% of the shares and related interests of certain subsidiaries of Kobalt Music Group Limited, referred to as AWAL. This acquisition could stimulate the growth of the company.
SONY’s sales and operating income increased 8.9% year-over-year to 8,999.36 billion yen ($ 82.24 billion) for its fiscal year ended March 31, 2021. Its operating profit rose 14.9% year-over-year to 971.86 billion yen ($ 8.88 billion). , while its net profit rose 91.4% year-on-year to 1,191.37 billion yen ($ 10.89 billion). The company’s EPS rose 103.1% year-over-year to 936.90 yen.
Analysts expect SONY’s EPS and revenue to grow 100.7% and 9.9%, respectively, year-over-year to 8.53 billion and 81.72 billion dollars in its 2021 fiscal year. It has exceeded consensus EPS estimates in three of the past four quarters. The stock has climbed 58.1% in the past year to close yesterday’s trading session at $ 99.57. It is currently trading nearly 16% below its 52-week high of $ 118.50, which it hit on February 5, 2021.
SONY POWR odds reflect these promising prospects. POWR ratings assess stocks based on 118 different factors, each with its own weight.
The stock has a B rating for momentum and stability. In the Entertainment – Media Producers industry, SONY is ranked # 4 out of 18 stocks. To view SONY’s ratings for Growth, Value, Feeling, and Quality, Click here.
Panasonic Corporation (PCRFY)
Based in Kadoma, Japan, PCRFY is another major player in the field of consumer electronics. It develops, produces and sells various electronic products around the world. It operates through five segments: Home Appliances, Solutions for Life, Connected Solutions, Automotive Solutions and Industrial Solutions. The company’s offerings include air conditioners, refrigerators, microwaves and other products.
On April 23, PCRFY announced that it had agreed to acquire Blue Yonder, a leading provider of end-to-end digital execution platforms. This acquisition strengthens its portfolio and accelerates the autonomous supply chain mission shared by businesses, enabling consumers to optimize their supply chains using the combined power of AI / ML and the Internet of Things ( IoT) and peripheral devices.
The company’s sales were negatively affected when the global economy saw a drop in consumption and investment resulting from the prolonged impact of COVID-19. However, PCRFY’s operating profit in its home appliance segment increased 187% year-on-year to 104.3 billion yen ($ 953.09 million) for its fiscal year ended March 31, 2021. Its assets total grew 10.1% year-on-year to $ 6,847.07 billion. yen ($ 62.57 billion). Its operating profit increased 14.9% year-on-year to 971.86 billion yen ($ 8.88 billion). In addition, its operating profit in the automotive segment was 10.9 billion yen ($ 99.6 million) compared to an operating loss of 45.6 billion yen (416.69 million yen). dollars) during the period of the previous year.
For the quarter ending June 30, 2021, analysts expect PCRFY’s EPS and revenue to increase 425% and 18.2% year-on-year respectively to 0.13 and $ 14.8 billion. It has beaten Street’s EPS estimates in three of the past four quarters. The stock has climbed 28.8% in the past year to close yesterday’s trading session at $ 11.48. It is currently trading 21% below its 52-week high of $ 14.55, which it hit on February 16, 2021.
It’s no surprise that PCRFY has an overall B rating, which equates to Buy in our POWR rating system. The stock has an A rating for value and a B rating for growth, stability and momentum.
Click here to also see PCRFY’s ratings for sentiment and quality. PCRFY is ranked n ° 7 out of 47 stocks in the B ranking Technology – Material industry.
Shares of SONY were trading at $ 99.71 per share on Friday afternoon, up $ 0.14 (+ 0.14%). Year-to-date, SONY is down -1.37%, compared to a 12.90% increase in the benchmark S&P 500 over the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal’s a keen interest in the analysis and interpretation of financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach he takes while advising investors in his articles. After…